If you’re the owner of a small- to medium-sized business, it’s always a good practice to have an eye on the market for mergers and acquisitions —
Buyers are reemerging after a bit of a lull last year. Recent data shows an 11 percent gain year-over-year in the number of middle market acquisitions and a 36 percent jump in the total amount spent on those transactions.
This isn’t all that surprising, based on where mid-market companies are in the economic cycle.
Finding from our report Mid-market Perspectives: 2014 Report America’s Economic Engine also indicate that a majority of executives said the economy was improving, giving them the confidence needed to hire workers and make major investments. The findings tell us that the middle market is back in growth mode, and business leaders are looking to deals to expand operations and diversify their customer base.
As positive as all of these indicators are, the reality is that, all too often, companies that may be ripe for acquisition miss out because of a failure to align their expectations with those of potential buyers. This skewed perspective can lead to significant gaps in the company’s perceived value and ultimately scuttle a deal.
Avoiding these disconnects is simple: Think like a buyer.